Watkin Jones Share Discussion Threads

[hawaly] 16/5/2018 09:53

Some blue sky appearing?

[santangello] 04/5/2018 11:46

Worth a read, and no doubt a catalyst for buying on/since 2 May :

[quepassa] 01/5/2018 16:42

maybe they are close to announcing the new CEO.


ALL IMO. DYOR.
QP

[landmark2] 01/5/2018 16:20

56000 buy at 2 . 04 pounds

[quepassa] 27/4/2018 10:42

if you haven't yet had the chance (which I recommend) to read the Tosca report, this much briefer incidental web-link gives great credence to their thesis. It's happening already!

hXXps://www.chinatraveloutbound.com/a-guide-to-chinese-students-studying-abroad-in-europe/



Time will tell but what is for sure is that China will be influencing the world economy in all spheres including educational more and more. And it seems to me that Brexit has given the UK a golden opportunity to capitalise on that which Theresa May and Boris Johnson have recognised and are acting upon.
The great march by the Chinese people to travel and study abroad is only just beginning.

Best wishes,

QP

[greyingsurfer] 27/4/2018 10:13

No I haven't QP. Their analysis could well turn out to be true. But in recent years we've seen governments ignoring the economic benefits of overseas students to make political points. I don't believe Tosca, or anyone else, can predict what's going to happen in that regards going forward, so the risk is real and remains.

Non EU student numbers enrolling in the UK fell in both 15/16 and 16/17, which may be reflection of policies making it harder to get a student visa or relative increases in attractiveness of alternative places to study, or both.

Also while numbers of non EU students in the UK fell in the past two years reported (up to 16/17) those enrolled in UK institutions but studying either remotely or at overseas branches of those institutions, i.e. not in the UK, rose.

There are reasons why the UK university sector could see large further increases in non EU overseas numbers as Tosca predict, but for that to happen the universities need active support from the govt of the day, and they need also to compete on skills and quality with alternative destinations.

Peter

[quepassa] 27/4/2018 09:13

Peter,
Have you perused the Tosca report? It's convincing.
The mood music between UK and China is very harmonious and, who knows, but maybe the report even understimates the numbers of overseas students from China such is the pull and reputation of the British university system and the desire to acquire flawless English language skills.

ALL IMO. DYOR.
QP

[jonwig] 27/4/2018 09:04

I've thought a bit recently about the expansion of distance/remote learning. The Toscafund paper (thanks for that, Que P) considers this in #4.16 (p73) and dismisses the impact rather airily, to my mind - Whilst not dismissing the growth of distance learning within the UK’s higher education industry for a growing number of those coming of university age, this will be no real substitute for the real thing of being ‘on campus’ in the UK.

There doesn't need to be a wholesale move to online courses: an accommodation unit needs something like 80% occupancy to be profitable, and 97% is considered 'fully occupied'. Once potential investors see voids increasing, they'll be less keen to invest.

There is, of course, the question of alternative use. WJG's earlier projects didn't have this, but more recent ones are supposedly convertible. The point is the amount of 'communality'. Most student accommodation is built around 'pods' with a degree of shared bedrooms and kitchens. There's a limit to how much young, independent adults will want that set up.

[greyingsurfer] 27/4/2018 08:42

The Report is sub-headed "One million more students to attend British Universities by 2034" and explores this topic including the great influx expected of overseas students, especially from China.

That's making assumptions about future govt policies on counting overseas student numbers. If they start recognising that overseas students are one of the main, and growing, sources of foreign earnings and encourage them then those forecasts might well prove true. If they stick to tight immigration targets, in which students are included, then I suspect it will get harder for universities to attract overseas students to the UK, and those student housing predictions will fall short.

Peter

[panic investor] 26/4/2018 20:01

That is very strange indeed I agree

[quepassa] 26/4/2018 19:30

Go to

www.toscafund.com

hit the tab marked "Research" then "Discussion Papers".

and you will find an in depth report headed "Growth of Britain's University Cities"

freshly dated January 2018.

The Report is sub-headed "One million more students to attend British Universities by 2034" and explores this topic including the great influx expected of overseas students, especially from China.

These students all have to stay somewhere.

Watkin Jones is mentioned, for example, on page 91 of this erudite report.

If anyone needs further convincing about future demand for student accommodation, this research piece should allay any fears.

This report is very convincing and underscores why the prospects for WJG should be absolutely stellar in this sector.

ALL IMO. DYOR.
QP

[minerve] 26/4/2018 18:29

Maybe it is to allow summer lettings? June - Sept/Oct?

Otherwise I would have thought student demand would have been sufficient, if not, then to me that is a potential concern.

[thebradski007] 26/4/2018 17:51

Not sure as to why non students 'could' be living there yet the bigger picture is that there is a demand for rooms whether it be students or non students. Positive either way.

[minerve] 25/4/2018 16:36

"An application to allow non-students to live in the building in its first year has been submitted to the Council."

Why?

[rivaldo] 23/4/2018 14:28

Cardiff is going well - note that FSL will be managing the property:



"Cardiff’s Tallest Building will be Home to nearly 500 students from September
By Rhys Gregory
Apr 23, 2018

Bridge Street Exchange, Cardiff’s tallest building and newest studentaccommodation development, which is being developed by Watkin Jones plc, hits a construction milestone this week with a traditional “topping out” ceremony held on the 26th floor.

At 85m high, Bridge Street Exchange is currently the tallest building in Cardiff and boasts fantastic views all around the city and further afield from the upper floors.

Having taken just over a year to reach full height, the scheme will officially open its doors this September, providing high-quality student accommodation across 477 en-suite rooms and studio apartments.

The scheme will have two roof gardens and three high-speed lifts have been installed to serve all of the 26 floors. A gym, cinema, laundry and social space will ensure that Bridge Street Exchange offers an unbeatable living experience in the city.

The accommodation will be managed by Fresh Student Living, who manage over 16,000 beds across the UK and the Republic of Ireland. Jane Crouch, COO for Fresh Property Group, said:

"Bridge Street Exchange will offer students an exceptional standard of accommodation in the heart of Cardiff within easy reach of both Cardiff University and the University of South Wales. We’re excited to be moving into an iconic local landmark and look forward to welcoming students this September.”

Watkin Jones plc are developing the scheme, which previously housed retail units and restaurants, and the façade to the Charles Street elevation has been retained as it falls within a conservation area. The pavements and road surfaces around the scheme will be upgraded to enhance the local area further, and plans are in place to build four duplex apartments on the site. An application to allow non-students to live in the building in its first year has been submitted to the Council."

[its the oxman] 23/4/2018 11:43

Be nice to see wjg back in the 220s at least. Not too long to wait hopefully.

[gswredland] 22/4/2018 08:59

Looking good - a long term hold for me

[adelwire2] 19/4/2018 13:05

Nice one Peel Hunt.

[rivaldo] 19/4/2018 11:48

Peel Hunt today reiterate their Buy and 230p target:

[rivaldo] 17/4/2018 09:24

The Fool's writers are certainly keen on WJG :o))



"Why I’d sell this Neil Woodford 8% yield (and buy this stock instead)
Royston Wild | Wednesday, 11th April, 2018"

Extract:

"I would be far happier splashing out on Watkin Jones (LSE: WJG), instead.

Like Saga, the student accommodation provider is favoured by Neil Woodford and, in my opinion, looks to be in better shape to meet broker expectations for chunky dividends. Watkin Jones continues to busily expand, cottoning on to favourable dynamics in the market. It currently has a development pipeline of above 9,800 beds, of which 8,300 have already received planning consent.

City analysts are forecasting earnings growth of 8% and 6% in the years to September 2018 and 2019, respectively. And these figures lead to predictions of dividend expansion from 6.6p last year, to 7.4p this year and 8p next year, meaning yields for these years stand at 3.8% and 4.1%.

An ultra-low forward P/E ratio of 12.8 times underlines Watkin Jones’s brilliant appeal, too."

[adelwire2] 16/4/2018 12:29

Totally agree with Woodford.

[rivaldo] 16/4/2018 10:28

Featured here as a buying opportunity:



"2 cheap Neil Woodford dividend stocks I’d buy for my ISA today
Roland Head | Thursday, 5th April, 2018

This could be safer than housing

If you’d like some exposure to UK property but are concerned about the housing market, student accommodation specialist Watkin Jones (LSE: WJG) could be an ideal alternative.

The Watkin Jones share price rose by nearly 4% in early trade this morning after confirming it’s on track to meet full-year expectations. All of the student developments due for delivery by summer 2018 have now been pre-sold to landlords, as have some of those due for completion by summer 2019. In total, the company has secured planning approval for over 8,300 ‘beds’ from its pipeline of 9,800 beds.

Watkin’s build-to-rent housing business is also growing. The pipeline of sites with planning approval has risen to 700 homes during the six months to 31 March. The firm now expects to build 1,500 homes over the next five years.

Why I’d buy

The shares have fallen by about 15% since mid-January, when chief executive Mark Watkin Jones announced plans to stand down after 15 years in charge.

I’m not too concerned by this. His departure is being carefully managed and he intends to remain available to the firm for advice. I think the weakness we’ve seen so far this year could be a buying opportunity.

Unlike conventional housebuilders, this business is focused on the more buoyant student accommodation sector, which should provide stable long-term demand. Alongside this, the company builds houses for large rental landlords, another area where demand is growing.

Taken together, I expect these operations to provide fairly reliable profits. And with the shares now trading on just 12 times forecast earnings and offering a 4% dividend yield, I believe this stock deserves a buy rating."